TV advertising, once upon a time, meant only one thing. You book a slot, run the ad at a selected time, and hope people are watching when it airs.
Today, the landscape of TV advertising has converged into two paths: the old-school linear TV advertising and the new connected TV advertising. Both have their merits and drawbacks, but the viewing habits of each medium differ.
If you’ve been wondering about TV advertising costs in Australia, understanding both these formats is essential. This guide breaks down how linear and connected TV differ in terms of audience, viewing habits, targeting, and budgeting.
Before we answer the question of how much does it cost to advertise on TV, let’s first get an overview of linear and connected TV advertising.
What is Linear TV Advertising?
Linear TV is what most of us grew up with. It’s scheduled programming that runs at a specific time on a channel. Think free-to-air broadcast networks, such as ABC TV, SBS, Channel 7, Channel 9, or Channel 10. Viewers tune in, and the content, along with the ads, flows in a predetermined, unchangeable line.
Linear TV advertising refers to the commercial breaks run during on-air broadcast. These are typically 15-, 30-, or 60-second ad spots that viewers see during their weekly episode of MasterChef or daily news program. Its strength lies in the massive audience reach. It pulls a significant, often older, demographic that plans their evening around these broadcasts. It’s a one-to-many megaphone.
What is Connected TV Advertising?
Now, connected TV advertising is different. It refers to ads served on internet-connected televisions, whether that’s through a smart TV, a streaming stick like Amazon Fire TV, or a gaming console. This umbrella includes OTT TV advertising (Over-The-Top), which refers to streaming content from services like Binge, Stan, or YouTube on the big screen.
Here, viewing is on demand. The platforms deliver ads based on a blend of content being viewed and, crucially, data about the household or user. This is where targeting becomes interesting, moving beyond simple demographics.
Key Differences
The core difference is control versus chance. Linear is about hoping your ideal customer will sit down at 7:42 PM on a Wednesday when your ad runs. Connected TV is about on-demand viewing, meeting audiences where and when they choose. This leads to a stark contrast in targeting.
Linear offers broad demographic (age, gender, location) and daypart targeting. Connected TV enables advanced audience segmentation. Think targeting households that have shown an interest in luxury cars or recent travel, or even retargeting your website visitors on the big screen.
The measurement gap is huge, too. Linear relies on panel-based ratings estimates, while connected TV provides digital-style analytics on impressions, completion rates, and sometimes even offline store visits.
Viewer Behaviour: Linear TV vs Connected TV
Australian viewing habits have fundamentally shifted. There is a large audience segment that has cancelled their pay-TV, another group that never had it, and a huge majority of “hybrid viewers” who flip between the two.
This fragmentation changes attention. A linear ad break might be a cue to make a cup of tea, while an ad on a streaming platform can feel more integrated, sometimes even unskippable. The viewer’s mindset differs because they’ve actively chosen the content, so they’re often more engaged.
Targeting Capabilities Compared
Linear TV targeting for a TV advertising Sydney campaign might mean buying time on a Sydney-based network affiliate. It’s effective for geographical saturation.
Connected TV advertising, however, can use IP addresses to target specific Sydney suburbs, or even combine geographic data with behavioural signals. This is the power of OTT TV advertising: layering interests, online behaviours, and purchase intent over a geographic foundation.
Ad Formats and Creative Options
Linear TV creative is a one-size-fits-all masterpiece: a single, polished video meant to resonate with millions. The storytelling in linear is about broad emotional appeal.
Connected TV opens the door to more dynamic ideas. Think of interactive ads with “click to learn more” prompts, or creative that can be versioned for different audiences without a full reshoot. The storytelling here can be more personalised, more direct, and often designed with a clearer next step in mind.
Linear TV Advertising Costs Explained
TV advertising rates for linear are famously opaque and negotiated. TV advertising costs in Australia are driven by supply and demand: prime-time slots on major networks command a premium, while off-peak slots are more affordable.
You’re paying for the estimated audience size (ratings points) and for high production costs. It’s a significant investment, but for large-scale brand awareness campaigns aiming to dominate a conversation, the cost efficiency at that mass reach level can still be unmatched.
Connected TV Advertising Costs Explained
Connected TV advertising typically uses a Cost-Per-Thousand Impressions (CPM) model, similar to much of digital advertising. This offers more transparency and budget flexibility. You can often start or stop campaigns faster and adjust spending based on performance.
While OTT TV advertising can have premium CPMs due to its engaged environment, the ability to target precisely often means less wasted spend, making it increasingly accessible for small and medium businesses that could never consider traditional TV advertising costs.
How Much Does It Cost to Advertise on TV?
This is the universal question. For linear, a single 30-second spot can range from a few thousand dollars in regional areas to tens or even hundreds of thousands for national prime time. It’s a high-stakes game.
Connected TV campaigns, in contrast, can sometimes be tested with budgets from a few thousand dollars per month, scaling from there. The total TV advertising costs comparison isn’t apples-to-apples – you’re buying broad reach versus precise reach.
Measuring What Matters
Linear TV measurement is largely about reach and frequency estimates. Did people likely see it? Connected TV provides definitive counts of impressions served and completed, and can sometimes track subsequent actions such as website visits or app installs. This attribution is a game-changer for understanding real return on ad spend, moving the channel from pure branding to performance marketing.
Reach vs Precision: Choosing the Right Channel
Sometimes you need the undisputed reach of linear TV to launch a new product. Other times, the precision of connected TV to efficiently drive conversions is the clear winner. The smartest strategy, of course, often combines both.
Use linear for broad awareness, and use connected TV to follow up with a more targeted, persuasive message to key segments, including those who saw your linear ad. This holistic approach also complements other channels, like digital billboard advertising for outdoor impact or radio advertising in Sydney for localised voice.
Industry Trends Shaping the Future of TV Advertising
The trends are undeniable. OTT TV advertising growth is surging as linear viewership slowly declines. Technology is enabling smarter ad delivery and better creative integration. The future is addressable: the ability to show different ads to different households watching the same program. The gap between the two worlds will likely continue to narrow, with data becoming the central currency.
Making Your Choice
Deciding between connected TV and linear TV comes down to your goals. Is this a national brand-building play, or a targeted demand-generation campaign? What do your audience insights say about their media diet? You must weigh budget, scalability, and the need for measurable performance.
Conclusion
Linear TV and connected TV advertising are two distinct tools in a modern media planner’s kit. One offers unparalleled mass scale, the other offers targeted efficiency and measurement. The real magic happens when you understand their unique strengths and weave them together into a strategy that covers both the broad strokes and the fine details.
At The Media Planning Agency, we help Australian brands navigate these exact decisions every day. Let’s discuss your audience, goals, and budget to build a well-thought-out advertising strategy that blends the best of both TV worlds.
Call us at 1300 889 115 and let’s have a chat together.
